please use excel to solve b and d e operation manager of EasyCool Co., a manufac

Question

please use excel to solve b and d e operation manager of EasyCool Co., a manufacturer of air conditioners, is now scheduling the production plan for the next four months. They will incur an inventory cost for each unsold air conditioner at the end of every month. The company now has 150 air conditioners available and is required to 80 air condit is given as follows: 15. Th hold at least ioners at the end of month 4. Information for the next four months PRODUCTION PRODUCTIONCOST PER AIR CAPACITY HOLDING COST PER AIR CONDITIONER ESTIMATED DEMANDS CONDITIONER $500 $550 $520 $500 600 $10 650 $12 $15 $12 650 700 3 750 900 4 800 550

Explanation / Answer

Month 1 Month 2 Month 3 Month 4 Production 650 650 750 630 Ending Inventory 200 150 0 80 Current Inventory 150 Inventory at end of 4 month 80 Month 1 Month 2 Production Cost 325000 Production Cost 357500 Inventory Cost 2000 Inventory Cost 1800 Month 4 Month 3 Production Cost 315000 Production Cost 390000 Inventory Cost 960 Inventory Cost 0 Total Production Cost 1387500 Total Inventory Cost 4760 The company should rent out the free space for the third month.

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